Bolivia: Selected Issues

This Selected Issues paper examines economic developments in Bolivia during 1990–97. Macroeconomic developments in 1997 were generally sound. Economic growth for the year remained moderately robust while inflation continued on a downward path. However, the structural reforms adopted since 1995 generated fiscal costs of about 3 percent of GDP in 1997, with the 1996 pension reform accounting for about half of these costs. The paper also reviews Bolivia's growth performance over 1960–97 and assesses the factors behind that performance.